FOR SHARE CAPITAL

(ACCOUNTING
8.62 COMPANY ACCOUNTS

reissue) Bharat Tyres Ltd

ällotments, forfeiture and full issued
LLUSTRATION 37. (Pro rata shares of 10 each
at a premium of 7 4
invited applications for 1,00,000 equity
as follows.
per share. The amount was payable
On application 7 6 (including premium T 2)
On allotment F 6 (including premium 7 2)
Balance on first and final cal1. to all the
were received.
Allotment was made
APplications for 1,50,000 shares
applicants on pro-rata basis.
Subodh to whom 200 shares were allotted failed to pay allotment and call money.
shares were
to whom 100 shares were allotted failed to pay the call money. Their
Vikram
forfeited and afterwards re-issued @ 8 per share fuly paid up.
Pass necessary journal entries.
SOLUTION JOURNAL
Particulars L.F. Dr. Cr.
Bank account Dr. 9,00,000
To Share application accóunt
(Being the receipt of the application money on 9,00,000
1,50,000 shares@ T 6)
| Share application account
To Dr. 6,00,000
Share capital account
To
Securities premium account 4,00,000
(Being the application money on 1,00,000 shares 2,00,000
allotted transferred to share
premium account) capital and share
Share application account
To Share Dr.
allotment 3,00,000
(Being the transfer of the account
to the excess
allotment amount due) application money 3,00,000
Share allotment account
To Share Dr.
To capital account 6,00,000O
Securities
(Being the allotmentpremium account
money on
4,00,000
T6 per share including 1,00,000 shares 2,00,000
|Bank account premium)
Calls in arrears Dr.
account
To Share
allotment account Dr. 2,99,4000
(Being the allotment 600
99,800 shares money received on
remaining 3,00,0000
Share first and final call
To Share account Dr.
capital account
(Being the first and final call@ 7 2 per 2,00,000o
on
1,00,000 shares as per Board share due
dated.) resolution No.. 2,00,000
| Bank account
Calls in arrears Dr.
account (300 x
To Share first and final call2) Dr. 1,99,40o
account 600
(Being first and final call received on 99,700 shares
7 2 per share)
2,00,000
 8.63
FOR SHARE CAPITAL;
ACCoUNTS
(ACCOUNTING
COMPANY
3,000
Dr.
account (300 x
10) Dr.
400
Share capital account (200 x 2) 2,200
Securities premium
a c c o u n t (300
x 2 + 200 x
8) 1,200
forfeited
To S h a r e
A/c t 4)
( )
To Calls in
arrears
10 each
s h a r e s of 7
forfeiture 300of and
(Being the the
non-payment
of a l l o t m e n t
a c c o u n t of
on
Dr. 2,400
call money) x
8) 600
account (300 Dr.
Bank
forfeited
account
2) (300 x
3,000
Share (300 x 10)
account

To Share capital 8fully paid up)

the re-issue of 300 shares @ 7 Dr.
1,600
(Being account
(2,200-600) 1,600
forfeited
Share account
reserve
To Capital capital reserve account)
to
(Being the transfer ofthe profit
WORKING NOTES dc
allotment in case of Subodh.
due but not paid on

Calculation of the amount

1.
Subodh = 200 x 1,50,000-300= 300

number of shares applied by 1,00,0000

Total 1,800
x 6 =

by Subodh =
300 600
Application money paid x 6
E x c e s s application money
paid = 1 , 8 0 0 - 2 0 0 1,200
200 x 6 =F =
600
due o n allotment
amount
1,200- 600
=
Total -

on allotment
Amount due but not paid received.
money
ofallotment 6,00,000
Calculation
2 due
Total allotment money 3,00,000
Less (a) Amount already
received 600 3,00,60o

Not received o n allotment (as per note above) 2,99,400

(b)
Received

TTN T A CI ANCE